Dáil Éireann debate -
Wednesday, 13 Dec 2000

Vol. 528 No. 2

Written Answers. - National Pensions Policy Initiative.

Ivor Callely

Question:

173 Mr. Callely asked the Minister for Social, Community and Family Affairs the outstanding recommendations which have yet to be implemented as contained in the National Pensions Policy Initiative proposed in May 1998 on securing retirement income; and if he will make a statement on the matter. [29867/00]

Minister for Social, Community and Family Affairs (Mr. D. Ahern)

The Pensions Board's report – 'Securing Retirement Income' – on the National Pensions Policy Initiative (NPPI) laid down a blueprint for the development of supplementary pensions provision in Ireland. It is a particularly complex and detailed report and the culmination of a lengthy consultation process with all the representatives of the Irish pensions area.

On publication, the Government broadly welcomed the thrust of the proposals and I take this opportunity to reaffirm the Government's firm commitment to the implementation of the proposals contained in the board's report.

I should point out that the Government has already taken action on a number of the main NPPI proposals. The Government has set up a pensions reserve fund to partly offset the future cost of pensions – as recommended by the board – and the significant increases in the rate of the old age pension – including the increase of £10 announced in last week's budget – means we are making good progress to meeting the NPPI recommendation that the weekly rate should represent 34% of the average industrial wage.

In addition, acting on one of the recommendations in the report, I introduced provisions in the 1999 and 2000 Social Welfare Acts which prohibited reductions in occupational pensions already in payment to pensioners, arising from increases in social welfare pensions. This ensured that the full value of the budget increase in the social welfare pension was passed on to pensioners.

In relation to outstanding NPPI recommendations, it is proposed that the forthcoming Pensions Bill will give legislative effect to these proposals. One of the key features of the Bill will be the provision of a legislative framework for the introduction and regulation of personal retirement savings accounts (PRSAs). PRSAs were recommended by the board as the vehicle to facilitate increased savings for pensions and extend supplementary pensions coverage overall, especially to people who have no such cover at present.

The Bill will also make provision for a number of other NPPI related matters, namely the Pensions Board proposals relating to access, vesting, preservation and revaluation. In the context of preparations for the Bill, I am also considering reports from the board in relation to the treatment of scheme surpluses, equal treatment, a pensions ombudsman and a compensation fund.